GM and Ford Post Poor Gains in Europe

As the sales of cars in the United States top out, the American manufacturers need to look to the European Union and China for improvement. Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) had a tough time of it in Europe during August. Each underperformed the growth of the entire market.

Sales of cars in the EU hit 819,126, up 10% from the same month last year. Based on the figure, the EU market is well ahead of the U.S. market in terms of growth.

The primary problem GM and Ford have in the EU is their tiny market shares. Ford has 6.6% of the market, the same as GM. The top of the market is controlled by Volkswagen, which has held the place by a wide margin despite the diesel scandal. Its sales, however, were not exactly robust, rising 6.9% to 212,004. VW has 25.9% of the market, much higher than GM, the top car seller in the United States. GM’s American market share usually lingers around 18%.

Ford’s shares are down 14% to $12.14 this year. GM’s are off 10% to $30.71, while the S&P is up 4%. The market believes, despite their self-driving and electric cars, that the top two U.S. car makers are barely growing in America and are lagging in Europe.